Indonesia to Continue Electric Motorcycle Incentives in 2026

Industry Minister Proposes Continued Support

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, announced plans to propose the continuation of electric motorcycle purchase incentives for 2026. This program, which began in 2023 with subsidies of Rp 7 million per unit, has been instrumental in promoting the adoption of electric vehicles in the country.

Economic Rationale Behind the Incentives

Agus emphasized that the incentives are crucial due to their significant backward and forward linkages across various sectors of the economy. The minister highlighted that the electric motorcycle industry has substantial connections with other economic sectors, making it a vital component of Indonesia's economic development strategy.

Current Status of the Proposal

The proposal for continuing the incentives in 2026 was submitted earlier in 2025. However, the decision is pending approval from the Coordinating Ministry for Economic Affairs. Agus mentioned that while the Ministry of Industry has made the proposal, the final decision lies beyond their authority.

Impact on the Electric Vehicle Sector

The continuation of these incentives is expected to maintain the momentum in the electric vehicle sector. The initial program in 2023 provided Rp 7 million subsidies for electric motorcycle purchases, significantly boosting the industry. The proposed continuation aims to sustain this growth and further encourage the adoption of electric vehicles in Indonesia.